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Marketing vocabulary · Pricing

Margin

Meaning in marketing, with examples

/ˈmɑːrdʒɪn/nounCore term

In marketing, margin means: The difference between a product's selling price and what it costs, usually shown as a percentage of the selling price.

In Turkish: kar marjı, marj

How it is used

Marketers watch margins when planning prices and promotions, because discounts reduce them. People talk about high-margin and low-margin products and about protecting or squeezing margins. Gross margin subtracts only the direct cost of the goods sold.

Example sentences

  1. The new range has a 40% margin, much higher than our standard products.

  2. Free shipping is popular, but it's eating into our margins.

Common collocations

  • profit margin
  • gross margin
  • high-margin product
  • squeeze margins
  • protect margins
  • price pointA particular price at which a product is offered, often chosen to match what a certain group of customers expects or can afford.
  • discountA reduction in the usual price of a product or service, often offered for a limited time or only to certain customers.
  • pricing strategyThe method a company uses to set and change its prices, based on its costs, its competitors, the value customers see and its business goals.
  • premium pricingSetting prices higher than competitors on purpose to signal quality, exclusivity or status, so that the high price becomes part of the brand's appeal.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Pricing

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